Carolina, Nike sign new 10-year contract

North Carolina

Carolina, Nike sign new 10-year contract

By UNC Sports Information

Jul 1, 2009

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CHAPEL HILL -- The University of North Carolina at Chapel Hill and Nike Inc.
have signed a new 10-year contract for Nike to be the exclusive supplier of athletic footwear, apparel and accessory products to the Tar Heels.

UNC and Nike signed the contract in late May. It took effect retroactive to July 1, 2008.

"The University of North Carolina is proud of its long-standing relationship with Nike," says Director of Athletics Dick Baddour. "This partnership has benefitted all 28 varsity sports and provided millions of dollars for academics and student scholarships at the University."

Nike will provide the athletic department with shoes, uniforms, coaching gear, balls and other equipment.

"It¹s important in these challenging economic times to put your athletic department on better financial footing, and this contract lessens and hopefully eliminates the need for our programs to purchase those items from their operating budgets," says Baddour. "A key part of the new contract is an increase in the amount of product our programs can order."

In addition to the apparel and equipment, which constitutes the majority of the value of the contract, Nike will give the University $2 million to the Chancellor's Academic Enhancement Fund. Chancellor Holden Thorp says he will direct the funds to faculty support.

Nike will also provide support for team tours, travel and hosting regular-season tournaments in several sports. The athletic department will also receive $1 million for signing the contract, with those funds being used to overhaul lighting and sound at the Dean E. Smith Center.

In the new agreement, Nike will continue to provide resources for an academic and athletic excellence fund. The academic and excellence fund, added in 2001, helps fund bonus payments to the coaches based on achievements of excellence by their respective student-athletes in the classroom and competitive arena.

Nike has also entered into individual contracts with each of UNC¹s head coaches, consistent with NCAA regulations and University policy.
Nike will also provide annual summer internships for two students to honor the memory of Rutledge Tufts, former UNC licensing director who was instrumental in crafting fair labor practice standards, and former student body president Eve Carson.

Nike, UNC¹s top licensee of retail merchandise, will pay the University a premium royalty on the sale of Carolina-logoed merchandise. The rate exceeds the University¹s standard royalty rate.

Nike has the exclusive right to manufacture Carolina jerseys, including authentic, replica, vintage/throwback and fashion jerseys for baseball, basketball, football, lacrosse and soccer. These exclusive rights do not include youth and infant/toddler jerseys. UNC and Nike recognize the need for fans to have a variety of merchandise. Therefore, the new agreement allows for a special distribution strategy for the local market. In addition, Knights Apparel will manufacture UNC jerseys for sale in retail channels not covered by Nike. Together, these provisions will allow UNC jerseys to be available for sale by local area retailers to Tar Heel fans.

The University and Nike have affirmed their strong commitment to fair labor practices, a commitment that set an industry standard when adopted in the
2001 agreement. Under the terms of the license agreement, that standard remains in place. Nike will continue to produce licensed product and provide product to the University made in factories that provide fair working conditions and operate consistent with the labor standards in the University's license agreements and Nike's own Code of Conduct.
Furthermore, as leaders in their respective fields, Nike and the University have both agreed to promote the ideals of human rights and social and environmental protections.

"We are proud that Nike recognizes and shares the University¹s commitment to values, integrity and excellence," adds Baddour. "Both UNC and Nike remain dedicated to the high quality of labor standards stated in our previous agreements, which are affirmed in this contract."

"The new contract with Nike will enhance scholarship assistance available to our students through the revenues generated by the trademark licensing program and sales at Student Stores," says Derek Lochbaum, director of trademark licensing. "The overall agreement positions the University to remain a leader in the industry."

Teams, coaches and staff will exclusively use Nike-provided products for official games, practices and clinics. Nike receives tickets and parking passes to home games and postseason tournaments, full-color sponsorships in football and men's basketball game programs, acknowledgement in media guides, schedule cards, public address announcements and TarHeelBlue.com, the athletic department's official Web site. Nike also has the right to use UNC marks to advertise its product, subject to University approval.

Most Recent Comments

RE: Carolina, Nike sign new 10-year contract

One of the biggest companies in the USA. This is huge bucks for UNC. All the freebies too.
- Posted by Hokie 94
What are you a UNC fan or VT??????????
- Posted by airman

Hokie94 is a classy guy who loves Va Tech first, but supports other schools as well. That makes him first class in my book.

RE: Carolina, Nike sign new 10-year contract

i bet they change their name to,

"the university, er allegience of fans who left the trailor park, went to walmart and bought a t-shirt, and could never get into UNC on their best day."

RE: Carolina, Nike sign new 10-year contract

I bet they change there name to the University of Nike at Chapel Hill.

RE: Carolina, Nike sign new 10-year contract

^That would be fantastic to bring back la gear, but only if we can get those sweet light-up shoes. perhaps even the unitards can go back into service....
I wish that NCSU would be able to move to Nike and lose the three stripes.

Also, the shoe companies have a very strong pull in where b-ball recruits go to school these days. Sad but true.

RE: Carolina, Nike sign new 10-year contract

Who cares? What has college sports come to? It's just a money machine.

For 10 years Carolina will wear swooshs on their uniforms and Nike shoes. This won't persuade me buy Nikes. In fact, it'll do just the opposite because one of my favorite teams is anyone that plays the Tarholes.

WRAL Sports Fan

North Carolina